Samsung Electronics, SK Hynix to expand investment outside Greater Seoul; Haenam enterprise city emerges as top candidate for RE100 industrial complex
The government is set to launch a major project to expand investment in regional areas, led by the semiconductor industry. Announcements are expected to roll out sequentially from late this month, covering expanded investment by Samsung Electronics and SK Hynix in the Chungcheong and Honam regions, the establishment of a compound semiconductor research and development fab in Haenam, South Jeolla Province, and the designation of an RE100 — renewable energy 100 percent — industrial complex.
The moves reflect the Lee Jae Myung administration's push to disperse advanced industries concentrated in Greater Seoul to regional areas, creating new engines of growth.
According to political circles and South Jeolla Province officials, the government plans to unveil specifics of large-scale regional investment projects at a meeting between President Lee and the heads of major conglomerates at Cheong Wa Dae on June 29. Earlier, at a press conference marking his first anniversary in office on June 8, Lee said he would "move toward becoming a nation of overwhelming industrial strength where all citizens and all parts of the country equally share the opportunities and benefits of growth," adding that he would "soon present to the public a large-scale investment project that will bring about a great transformation in our growth strategy."
The government and political circles are discussing plans to disperse semiconductor production bases — currently concentrated in Greater Seoul — to the Chungcheong and Honam regions. The aim is to pursue both balanced regional development and the cultivation of advanced industries through new investment or scale-up projects by Samsung Electronics and SK Hynix.
Various formats are under review, including back-end semiconductor packaging factories. Jangseong and Gwangju in South Jeolla Province, and Onyang in South Chungcheong Province have been mentioned as candidate sites. Samsung Electronics is said to be considering a packaging factory in Gwangju. SK Hynix may also locate some back-end processing facilities, including packaging operations, in the Honam region.
A plan to establish a compound semiconductor R&D fab in the Haenam enterprise city in South Jeolla Province is also expected to be announced in conjunction with the launch of the Jeonnam-Gwangju integrated special city on July 1. Samsung is among the companies confirmed to be participating in the project.
The Haenam enterprise city is also a leading candidate for an RE100 industrial complex alongside the compound semiconductor industrial park. An RE100 industrial complex is one where 100 percent of the electricity used by tenant companies comes from renewable energy sources such as solar and wind power.
The government is reviewing plans to tap South Jeolla Province's abundant solar and offshore wind resources to develop the RE100 industrial complex. Discussions are underway on using state-owned reclaimed land in the Haenam and Jindo areas to build large-scale solar power generation facilities and energy storage systems. The goal is to supply advanced manufacturers with stable and relatively affordable renewable energy.
The RE100 industrial complex is one of the Lee administration's flagship projects — so central that Kim Yong-beom, the presidential office's policy chief, personally briefed reporters on it in July last year, shortly after the administration took office. If a special law is passed, the government plans to provide substantial support, including corporate and income tax reductions and power infrastructure.
oskymoon@heraldcorp.com
